How to Create and Grow a Roth IRA For Your Children

Whether your child has earned income from a part-time job, or is working for a family business, a Roth IRA can be a game-changing tool for their financial future – but it must be done correctly. 

In this episode of The Agent of Wealth Podcast, host Marc Bautis explores the powerful strategy of setting up a Roth IRA for children. Inspired by recent buzz (yes, Beyoncé and Jay-Z come up), Marc explains how starting young with tax-free compounding can lead to extraordinary long-term growth. He covers everything from IRA rules and documentation requirements to real-life tax court challenges and best practices. 

In this episode, you will learn:

• The differences between Roth IRAs, Traditional IRAs, and taxable investment accounts.
• What counts as “earned income” and why it’s essential for Roth IRA eligibility. 
• How to legally employ your child through a family business.
• Real-world IRS red flags and examples of what not to do.
• Best practices for staying compliant and maximizing benefits.
• And more!

Resources:

Episode Transcript & Blog | Bautis Financial: 8 Hillside Ave, Suite LL1 Montclair, New Jersey 07042 [phone] | Schedule an Introductory Call